Brussels, 06/06/2001 (Agence Europe) - On Wednesday, the European Commission adopted new guidelines for the granting of State aid intended to promote, in the EU, advertising of farm products (dairy products, cereals, sugar, ethyl alcohol, yoghurt, pastry products). These rules, that are to take effect on 1 January 2002, are intended to update the current legislation (dating back to 1986 and 1987) and introduce conditions for authorizing State-funding for advertising referring to the regional origin of products.
Thus, the new guidelines will allow for the support of advertising campaigns on the origin of products, if conducted outside the Member State or the region of production (goal: make consumers aware of products with which they are not familiar). When the advertising is aimed at consumers of the Member state or region of production, information on the origin may also be provided. However, in the latter case, reference to origin must remain secondary in relation to information relating to the quality of the product. In the case of products bestowed with a protected designation of origin (including protected designation of origin, protected geographical indication - PGI, and traditional specialty guaranteed TSG) registered within the European Union, the Commission writes that it generally does not oppose advertising aid which include a reference to the origin of the product concerned, provided that it corresponds exactly to those which have been registered.
To take account of the entry into force of a compulsory system of labeling of beef, the new guidelines set out rules to respect to be able to subsidize traceability systems. It also provides for a maximum level of State aid of 50% (75% if it is a product manufactured by SMEs or in less favoured regions). Out of concern for the clarification of the legal framework now in force, the Commission stipulates the State-funded advertising may not incite consumers to purchase national products (rather than products from other Member states). Nor may they denigrate products of other Member States or mislead consumers, referring to special qualities that the products do not in fact possess. State-funded advertising campaigns for individual companies remain banned. Campaigns must refer to larger groups of products like cheese or wine from a certain region.